Driftwood Gas Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Driftwood Gas Pipeline is a proposed natural gas pipeline.[1]

Location

The pipeline would run from Ville Platte, Louisiana, to Carlys, Louisiana.

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Project Details

  • Operator: Tellurian Inc.
  • Proposed capacity: 4 billion cubic feet per day
  • Length: 96 miles / 154 km
  • Status: Proposed
  • Start Year: 2023[2]
  • Estimated Cost: US$2.2 billion[3]

Background

The proposed Driftwood Gas Pipeline would be operated by Driftwood Pipeline LLC (DWPL), a subsidiary of Tellurian Inc, to supply Tellurian's proposed Driftwood LNG Terminal export facility. In March 2017 DWPL submitted its FERC application and requested approval to begin construction in 2018, with a planned in-service date of 2022.[4] "DWPL proposes to build a new approximately 96-mile-long natural gas pipeline which will interconnect with up to 14 existing interstate pipelines to provide feedstock for the proposed Facility and pipeline compression power requirements. The Pipeline will extend westward from a proposed interconnect with the interstate pipeline system of CGT located approximately 4.5 miles south of Ville Platte, Louisiana, and then traverse four parishes (Evangeline, Acadia, Jefferson Davis and Calcasieu) for approximately 96 miles to the proposed Facility near the city of Carlyss, Louisiana. Once the Pipeline is placed in-service, it will provide the Facility with an annual average of approximately 4 Bcf/d of feed gas for liquefaction and export. Proposed interconnects with multiple interstate pipelines will enable the sourcing of feed gas from a variety of U.S. natural gas production areas, providing enhanced liquidity and ensuring reliability of supply for liquefaction and export. The Pipeline will be designed with a maximum allowable operating pressure of 1,440 pounds per square inch gauge, but generally will be operated at lower pressures."[4]

In December 2017 it was reported that DWPL planned to begin operating the pipeline by 2021.[5]

Tellurian says it obtained "the most significant permits required for construction and operation" in 2019: in April, the Federal Energy Regulatory Commission (FERC) gave the green light to build the pipeline[6], the United States Department of Energy granted export authorization that same year. [7]

Tellurian still has to receive a U.S. Army Corp of Engineers permit but that is expected soon, according to a Tellurian spokesperson.[6]

Development of the pipeline hinges on the proposed Driftwood LNG Terminal, the future of which has been hit by setbacks in 2020. During an investor presentation in June 2020, Tellurian's CEO Meg Gentle confirmed that the construction start for the Driftwood LNG terminal would be delayed until 2021. Gentle disclosed further that LNG production at the terminal would also be delayed until the end of 2024, with full operations expected by 2026 or 2027. The company's difficulties in securing partners for the project along with the downturn in LNG prices, which has been exacerbated by COVID-19, were cited as reasons.[8]

Articles and resources

References

  1. Driftwood Gas Pipeline, Driftwood LNG, accessed September 2017
  2. Natural Gas Data, Pipeline Projects Energy Information Administration, accessed July 21, 2020
  3. Tellurian to decide on Louisiana LNG project in early 2019 Reuters, accessed November 2018
  4. 4.0 4.1 CP17-117: APPLICATION FOR AUTHORIZATIONS UNDER THE NATURAL GAS ACT FERC, Mar. 31, 2017
  5. Tellurian Planning Two More NatGas Systems to Move Permian, Haynesville Supply to Gulf Coast Natural Gas Intel, Dec. 18, 2017
  6. 6.0 6.1 Anthony McAuley, Tellurian's $30bn Lake Charles LNG project clears Fed regulators Nola.com, April 18, 2019
  7. Tellurian (24 February 2020). "Tellurian Reports 2019 Results". Tellurianinc.com. Retrieved 27 February 2020.
  8. Harry Weber, Driftwood LNG target construction start delayed until 2021: Tellurian CEO S&P Global, Jun. 16, 2020

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External resources

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